Uncertainty in global economy has increased

Abstract

Uncertainty about the condition of the global economy increased in August–September. Concerns relate particularly to China, whose decelerating growth has unnerved the markets. In the Bank of Finland forecast, global growth will be 3.0%, 3.2% and 3.5% in 2015, 2016 and 2017, respectively. In addition to developments in China, the fact that world trade growth is past its peak weakens the outlook for the global economy compared with earlier predictions. There are downside risks to the forecast for the global economy.